AREC 305 (ACTUAL 2025/2026) FINAL EXAM UPDATED
QUESTIONS AND 100% VERIFIED ANSWERS GRADED A+
a whole-farm budget contains : - ---answers----estimated
costs, returns, and resource needs for a specific set of
enterprises
the first step in whole-farm planning is to prepare the whole
farm budget - ---answers----false
"technical coefficients" for whole-farm planning refer to : - ---
answers----the quantities of resources needed to produce
one unit of each enterprise being considered
if a resource in a linear programming formulation is not used
up entirely by the selected activities, then the shadow price on
the resource constraint will be zero - ---answers----true
in linear programming to maximize farm profits, "shadow
price" tells you : - ---answers----the amount profit would
increase if the operator had one more unit of a limited
resource
if the shadow price on a labor constraint in linear
programming is $40.00 (per hour) and labor can be hired for
$10 per hour, profits would be increased by hiring more labor -
---answers----true
,any investment that has a positive net present value will also
be financially feasible - ---answers----false
the process of finding the future value of a present sum is
called : - ---answers----compounding
depreciation is not included when computing the net cash
flows from an investment - ---answers----true
the process of finding of finding the present value of a future
sum is called : - ---answers----discounting
a $1,000 of income 5 years from now is worth the same as
$1,000 of income today - ---answers----false
a series of periodic payments is called a (n) : - ---answers---
-annuity
the most accurate way to analyze the profitability of an
investment is to compute the payback period - ---answers---
-false
using a higher discount rate will cause the present value of a
future amount to : - ---answers----decrease
, income taxes can affect the profitability of an investment - ---
answers----true
a net present value of zero means the investment has an
internal rate of return : - ---answers----exactly equal to the
discount rate
the simple rate of return and the internal rate of return will be
the same for any investment - ---answers----false
the internal rate of return is the interest rate that would : - ---
answers----make net present value just equal to zero
the higher the interest rate the smaller the annual payment
needed to accumulate a given amount 10 years from now - ---
answers----true
the future value of $10,000 placed in a savings account will
depend on : - ---answers----both the interest rate and the
time it is left in the account
a person requiring only a 6 percent return could pay more for
an investment than someone requiring an 8 percent return - -
--answers----true
a financial feasibility analysis looks at the : - ---answers----
net cash flows resulting from the investment and its financing
QUESTIONS AND 100% VERIFIED ANSWERS GRADED A+
a whole-farm budget contains : - ---answers----estimated
costs, returns, and resource needs for a specific set of
enterprises
the first step in whole-farm planning is to prepare the whole
farm budget - ---answers----false
"technical coefficients" for whole-farm planning refer to : - ---
answers----the quantities of resources needed to produce
one unit of each enterprise being considered
if a resource in a linear programming formulation is not used
up entirely by the selected activities, then the shadow price on
the resource constraint will be zero - ---answers----true
in linear programming to maximize farm profits, "shadow
price" tells you : - ---answers----the amount profit would
increase if the operator had one more unit of a limited
resource
if the shadow price on a labor constraint in linear
programming is $40.00 (per hour) and labor can be hired for
$10 per hour, profits would be increased by hiring more labor -
---answers----true
,any investment that has a positive net present value will also
be financially feasible - ---answers----false
the process of finding the future value of a present sum is
called : - ---answers----compounding
depreciation is not included when computing the net cash
flows from an investment - ---answers----true
the process of finding of finding the present value of a future
sum is called : - ---answers----discounting
a $1,000 of income 5 years from now is worth the same as
$1,000 of income today - ---answers----false
a series of periodic payments is called a (n) : - ---answers---
-annuity
the most accurate way to analyze the profitability of an
investment is to compute the payback period - ---answers---
-false
using a higher discount rate will cause the present value of a
future amount to : - ---answers----decrease
, income taxes can affect the profitability of an investment - ---
answers----true
a net present value of zero means the investment has an
internal rate of return : - ---answers----exactly equal to the
discount rate
the simple rate of return and the internal rate of return will be
the same for any investment - ---answers----false
the internal rate of return is the interest rate that would : - ---
answers----make net present value just equal to zero
the higher the interest rate the smaller the annual payment
needed to accumulate a given amount 10 years from now - ---
answers----true
the future value of $10,000 placed in a savings account will
depend on : - ---answers----both the interest rate and the
time it is left in the account
a person requiring only a 6 percent return could pay more for
an investment than someone requiring an 8 percent return - -
--answers----true
a financial feasibility analysis looks at the : - ---answers----
net cash flows resulting from the investment and its financing
